New Home Sales Drop to the Lowest Numbers Since August
New home sales have fallen to the lowest number since August according to a recent report. The numerous factors surrounding the drop include, higher borrowing costs and winter weather suppressing the demand.
"Single-family home sales dropped 7.8% month-over-month to a 593,000 annualized pace (the estimate was 647,000) after a 643,000 rate (revised from 625,000)," according to National Mortgage News.
"The median sales price increased 2.5% year-over-year to $323,000. The supply of homes at the current sales rate climbed to 6.1 months from 5.5 months; 301,000 new houses were on the market at end of January, the most since March 2009."
The South and Northeast seem to be suffering the most with the South seeing an incredible 14.2% decline in month-to-month sales of new homes, according to the report.
Mortgage cost has increased and seems to be one of the driving factors for the decline in new home sales. However, yesterday we reported on an expert who believed that the increase wasn't as dangerous as others may have been expressing.
To learn more about the decline in sales of new homes and the factors that are contributing to it, click on the image above.